The Affordable Care Act (ACA) passed in 2010, generally known as “Obamacare”, imposes a new 2.3 percent federal excise tax on medical device manufacturers set for implementation in January 2013. The Congressional Budget Office (CBO) anticipates that this medical device excise tax will generate $20 billion dollars. According to the CBO, this is but one of Obamacare’s 18 separate tax increases totaling approximately $800 billion over 10 years. This excise tax, applied to annual revenue rather than to net profits, will be assessed on all medical devices sold in the U.S. – including those that are imported – but does not apply to those medical devices manufactured and sold overseas by U.S. companies.
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